Loan Facilitator 360 DigiTech’s Profit Soars, as Investor Focus Elsewhere

Fintech’s first-quarter profit rose by factor of seven on its automation drive, even as company acknowledged recent meeting with top financial regulators    Key points: 360 DigiTech is executing well on its strategy to lower costs through growing automation of its loan facilitating services The company’s shares could remain under pressure until China’s financial regulators announce expected new round of regulations for high-tech loan facilitators By Doug Young It’s hard to focus on your business when there’s a wild tiger in the room and no one knows exactly if and…

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BIT Mining’s Rapid Move into Crypto Space Shows Early Signs of Depth

Former lottery ticket seller’s stock follows highly volatile bitcoin price, as its new business model shows positive results Key points: To survive in its new form as crypto miner BIT Mining must grow as quickly as possible, control costs, and efficiently integrate its acquisitions The company must also steer clear of Chinese oversight, become greener, and accept that its destiny will often be shaped by forces beyond its control By Ben Livesey The recently minted BIT Mining Ltd. (NYSE: BTCM) is doing what it says on the label – mining…

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China-based Middle East ‘Clubhouse’ Yalla: Unicorn or Just Empty Talk?

Company’s shares have gyrated wildly since its 2020 IPO, soaring on comparisons to popular U.S. voice chat app before plunging last week after short-seller attack •      Yalla lost nearly all gains for 2021 following short seller attack, even after it refuted the allegations and announced a stock repurchase program •      Analysts general upbeat on Dubai-based company as it posted triple-digit revenue and profit growth in its latest quarter       By Alice Leung Chinese-founded Yalla Group Ltd. (NYSE:YALA), often likened to a Middle East version of U.S. voice-centric social networking sensation…

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21Vianet Moving to Margins of Data Center Universe?

Microsoft’s China cloud services partner reports slowest revenue growth in first quarter among the country’s three major independent data center operators Key takeaways: 21Vianet’s latest results show it’s the slowest-growing among China’s three major independent data center operators The company’s relative laggard status could weigh on its stock as it focuses on boosting capacity at current facilities rather than opening new ones By Doug Young The latest leg in the horse race between China’s three main independent data-center operators has just concluded, with 21Vianet Group Inc. (Nasdaq: VNET) becoming the…

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Traditional Retailer Topsports Finds Better Profits in ‘Big Boxes’

Sportswear seller’s revenue jumps 21% in second half of its latest fiscal year and profits leap 75% as it focuses on mega-stores over smaller ones Key points: Topsports’ shift to larger stores is showing results in the form of strong revenue and profit gains in the second half of its latest fiscal year The company’s shares look undervalued compared to its more famous peers Li Ning and Anta  By Doug Young Questions may be hanging over the fate of the Summer Olympics in Tokyo, but that hasn’t dampened the broader…

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Yixin Drives Out From Fintech Maelstrom

Former auto lender issues upbeat first-quarter guidance after its transition to loan facilitator Key points: Tencent-backed auto-financier Yixin’s strong first-quarter update shows it’s making progress in transforming from lender to loan facilitator Company’s position remains tenuous as China reportedly considers new regulations on such loan facilitators By Ben Livesey Yixin Group Ltd. (2858.HK), the online auto financier backed by internet giant Tencent, has given investors reason to cheer after recently posting a bullish first quarter update. The announcement provided a lift for the much-scrutinized fintech sector, as well as for…

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Pharmaron, I-Mab and Burning Rock Get Investor Validation From MSCI

Three up-and-coming Chinese pharma companies are among those included in latest adjustment for the index compiler’s China All Shares Index Key takeaways: MSCI’s addition of Pharmaron, I-Mab and Burning Rock to its China All Shares Index highlights their strong growth potential Inclusion typically represents validation for a company’s products and outlook By Richard Barbarossa Drug and healthcare R&D firms are well-represented in the latest round of additions to the MSCI China All Shares Index, highlighting the sector’s growth potential and strong fundamentals. Some new ascendants to the list are even…

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IPO-Bound Soulgate Sells Itself as Service for the Lonely, Not Lusty

Operator of the app called Soul says it’s seeking internet natives who ‘experience the loneliness technologies bring’ Key takeaways: Soul’s no real-names and no-pictures policy may help it stand out as a new kind of non-dating app for people looking to socialize Massive promotional spending raises questions about sustainability of the company’s growth By Georgina Prodhan Soulgate Inc., the Tencent-backed operator of a social networking app planning a $100 million Nasdaq listing, isn’t your average dating app. In fact, the operator of the app that goes simply by the name…

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Polysilicon Maker Daqo Suffers Ahead of Brewing Solar Downturn

Company’s shares were unchanged after latest upbeat quarterly report, and are down 40% from their February peak Key points: Investors are cool over Daqo New Energy over concerns about a peak in polysilicon prices as soon as early next year Political factors related to the company’s production facilities in China’s western Xinjiang region are also a risk factor By Doug Young We seldom begin by looking a company’s valuation or recent stock trends, preferring to save that information for later, after reviewing the latest news. But in this case we’ll…

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Scooter Maker Niu Charges in China, But Stuck in Bullpen Globally

Company targets 600 new store openings in China in first half of 2021, raising total count by nearly 40% Key takeaways: Investors are growing cautious on Niu Technologies due to falling prices for its scooters at home and lack of progress internationally The company could still emerge as a major global brand after the pandemic subsides and shipping prices come down By Doug Young Electric scooter maker Niu Technologies (Nasdaq: NIU), whose name means bull in Chinese, is making a major charge in its home China market. But its voice…

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